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SABPP - HR Standards - SARS

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  • 1. 11 November 2013 Marius Meyer @SABPP1
  • 2. SABPP Professional Values RESPONSIBILITY INTEGRITY RESPECT COMPETENCE
  • 3. SABPP VALUE PROPOSITION: Products/Services to advance HR profession RECOGNITION = PROFESSIONAL STATUS • • • • • • • • Professional registration NLRD Upload (SAQA) RPL Awards Advocacy HR Assessors/Moderators registration Accreditation of providers University accreditation RESOURCES = PRODUCTS/SERVICES • • • • • • • • • • • • • • • • • • • • • HR Competency Model HR Standards Social media discussions Knowledge Centre Booklets/DVDs Guides/toolkits Charts/posters Fact sheets One-stop info Updates (laws, trends) Ethics help-line Newsletters Website HR Internships/jobs HR policies Mentoring Workshops/seminars Access to alliances Event/product discounts CPD Students RESEARCH = INFORMATION • • • • • • • • Research papers Position papers Books Articles Cases Benchmarking Magazines Labour market information
  • 4. HR Talent Management “Quite possibly the biggest challenge that needs to occur in HR has to do with talent management – not elsewhere in organisations, but how talent management in HR is a case of the shoemaker’s children lacking shoes. Our results suggest that HR often doesn’t have the right talent; all too often it has talent that is inferior to the talent in other parts of the organization.” Ed Lawler III & John Boudreau (2009) Achieving Excellence in Human Resources Management, Stanford University Press
  • 5. Is it a case of the shoemaker’s children lacking shoes?
  • 6. HR COMPETENCY HOUSE
  • 7. SOUTH AFRICAN HR COMPETENCY MODEL STRATEGY 5 HR CAPABILITIES TALENT MANAGEMENT HR GOVERNANCE, RISK, COMPLIANCE ANALYTICS & MEASUREMENT HR SERVICE DELIVERY HR & BUSINESS KNOWLEDGE SOLUTION CREATION & IMPLEMENTATION INTERPERSONAL & COMMUNICATION CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY 4 PILLARS DUTY TO SOCIETY CORE COMPETENCIES ETHICS ORGANISATIONAL CAPABILITY PROFESSIONALISM LEADERSHIP & PERSONAL CREDIBILITY
  • 8. Comfort zone challenged
  • 9. Importance of ethics
  • 10. Operational Management Consistency in the Management of People One of the toughest things to be is consistent
  • 11. Why standards ? Today standard users account for 78% of the FTSE 100, 53% of the Nikkei, and 44% of both the Fortune 500 and Hang Seng listed companies. The chair that you're sitting on, or the desk your computer is perched on, are held together by bolts and screws. Humble bolts and screws also hold together our children's bicycles - and also the aircraft we trust our lives to during business trips or holiday travel. The diversity of screw threads used to represent big problems for industry, particularly in maintenance, as lost or damaged nuts and bolts could not easily be replaced. A global solution is supplied in the ISO standards for metric screw threads. The credit card you may have used to buy your holiday can be used worldwide because all its basic features are based on ISO standards. We are so familiar with many objects, like credit or telephone cards, that we tend to assume they just "fell out of the sky". In fact, the ease with which we can use them can be traced back to an ISO standard.
  • 12. Standards influence our lives  19,500 ISO standards from ISO 163038 Guidance on the use of ISO 4074 in the quality management of natural rubber latex condoms to ISO 31000 risk management !!  Standards provide either a technological base a system of best management practices or a regulatory standard Accounting profession, Financial planning , Internal audit  Every component of the car you drive has a universal standard in the main managed by ISO/TS 16949. Every automotive company in the world works to this standard – consistency
  • 13. Globally standards are a framework for consistency & continuous improvement and managing risk through controls “Consistency is far better than rare moments of greatness “ Strengthening the human factor in management systems
  • 14. Why a national HR Standard? • We need to improve the quality of HR practice. • HR will not be seen as a true profession without standards. • Inconsistencies – practices, sites, business units, companies, industries. • Too many bad examples of things going wrong – Marikana, De Doorns, Medupi. • Raising the bar for the HR profession and business impact.
  • 15. 468 HR Leaders developing HR Standards for South Africa
  • 16. HR Standards Facilitators Kate Dikgale-Freeman Michael Robbins Linda Chipunza
  • 17. HR Standards Pioneers
  • 18. Market reaction to project • • • • • • • • • • • • All over SA (all 9 provinces) USA (SHRM and ISO) UK (CIPD) Australia Netherlands Zimbabwe Zambia Botswana Namibia Lesotho Swaziland Kenya
  • 19. SABPP HRM SYSTEM STANDARDS MODEL BUSINESS STRATEGY – HR BUSINESS ALIGNMENT Prepare HR Risk Management Talent Management HR ARCHITECTURE Implement Workforce planning Learning HR Service Delivery Review Performance Reward Wellness HR VALUE & DELIVERY PLATFORM HR MEASUREMENT HR Audit: Standards & Metrics ERM OD HR Technology (HRIS) HR COMPETENCIES Strategic HRM Improve
  • 20. Some of the standard elements Here are 4 examples of the Standards: 1. 2. 3. 4. Strategic HR Management Talent Management HR Risk Management HR Measurement
  • 21. STRATEGIC HR MANAGEMENT STANDARD DEFINITION Strategic HR Management is a systematic approach to developing and implementing long-term HRM strategies, policies and plans that enable the organisation to achieve its objectives. SABPP (2013)
  • 22. STRATEGIC HR MANAGEMENT STANDARD OBJECTIVES 1.2.1 To ensure the HR strategy is derived from and aligned to the organisation’s objectives in consultation with key organisational stakeholders. 1.2.2 To analyse the internal and external socio-economic, political and technological environment and provide proactive people-related business solutions. 1.2.3 To provide strategic direction and measurements for strategic innovation and sustainable people practices. 1.2.4 To provide a foundation for the employment value proposition of the organisation. 1.2.5 To establish a framework for the HR element of the organisation’s governance, risk and compliance policies, practices and procedures which balance the needs of all stakeholders. SABPP (2013)
  • 23. STRATEGIC HR MANAGEMENT STANDARD IMPLEMENTATION 1.3.1 Translate the overall strategic intent of the organisation into HR strategy. 1.3.2 Position the strategic HR agenda as an integral part of strategic decision making and operational plans. 1.3.3 Allocate HR resources and build capability to implement the HR mandate. 1.3.4 Provide the contextual foundation for the development of the policies, plans, practices and procedures. 1.3.5 Allocate accountability and responsibilities for the execution of HR strategy. 1.3.6 Ensure the execution of the HR strategy is measured and monitored within the governance framework of the organisation. 1.3.7 Drive continuous improvement and sustainability of the HR strategy through planned reviews and integrated reporting. SABPP (2013)
  • 24. Strategic HR: It is all about alignment
  • 25. TALENT MANAGEMENT STANDARD DEFINITION Talent Management is the proactive design and implementation of a talent-driven business strategy directed to attracting, deploying, developing, retaining and optimising the appropriate talent requirements as identified in the workforce plan to ensure a sustainable organisation. SABPP (2013)
  • 26. TALENT MANAGEMENT OBJECTIVES 2.2.1 To build a talent culture which defines the organisation’s philosophy, principles and approach to talent, which leverages diversity and is communicated in a clear employment value proposition. 2.2.2 To identify strategically critical positions and leadership roles and capabilities in the organisation into the future from the Workforce Plan that will determine the sustainability of the organisation. 2.2.3 To set up processes and systems which will: • Attract a sustainable pool of talent for current objectives and future organisation needs. • Achieve employment equity progress in the spirit of the legislation to achieve transformation. • Manage the retention and reward of talent. • Develop the required leadership skills. • Plan for succession to key roles. • Identify high potential employees and link them with key future roles in the organisation through monitored development plans. • Identify through assessment the optimal development opportunities for talent. 2.2.4 To agree appropriate roles for stakeholders in development & management of talent. 2.2.5 To monitor and report on talent management key results areas and indicators.
  • 27. Talent management
  • 28. TALENT MANAGEMENT STANDARD IMPLEMENTATION 2.3.1 Analyse the talent needs of the organisation by assisting in the segmenting and classifying talent across the organisation to ensure talent differentiation and management thereof. 2.3.2 Conduct labour market trend analysis of the required skills. 2.3.3 Create a talent management system focusing on current and future needs. 2.3.4 Engage and support line management regarding talent identification and requirements. 2.3.5 Decide on interventions to define and develop leadership competencies. 2.3.6 Decide on interventions to support effective talent management in the organisation. 2.3.7 Conduct a talent review linked to organisational objectives. SABPP (2013)
  • 29. TALENT MANAGEMENT PROCESS LONG TERM TALENT PLANNING Talent needs analysis Labour market analysis Talent review Talent Management Interventions Leadership & key competencies development Talent Management System
  • 30. HR RISK MANAGEMENT DEFINITION HR Risk Management is a systematic approach of identifying and addressing people factors (uncertainties and opportunities) that can either have a positive or negative effect on the realisation of the objectives of an organisation. SABPP (2013)
  • 31. Importance of HR Risk “In any organisation people are the single most valuable asset, but if badly managed, they can become the organisation’s greatest liability.” Dave Beretti, City of Cape Town
  • 32. HR RISK MANAGEMENT OBJECTIVES 3.2.1 To increase the probability and impact of positive events and decrease the probability and impact of negative events caused by people factors on the achievement of organisational objectives. 3.2.2 To align HR and people management practices within the governance, risk and compliance framework and integrated reporting model of the organisation. 3.2.3 To ensure appropriate risk assessment practices and procedures relating to people factors are embedded within the organisation. 3.2.4 To ensure appropriate risk controls are designed and applied to HR activities and interventions. 3.2.5 To contribute in creating and sustaining a risk culture in an organisation which also encourages innovation and creativity. SABPP (2013)
  • 33. “People and behaviour are often the biggest risks” • Critical to include people risks in a company’s risk management plan • HR need to be the eyes & ears for peoplerelated governance & compliance
  • 34. Risk / Readiness Profile
  • 35. HR -RISKS • • • • Safety - accidents Skills shortages/gaps Incompetence Employee disengagement • Strikes & poor employment relationships • Fraud/corruption • Stress • Staff turnover • Low staff satisfaction – impact on customer satisfaction • Cyber security • Conflict/disputes • Diversity problems • Sexual harassment • Expatriate issues • Non-compliance
  • 36. HR RISK MANAGEMENT IMPLEMENTATION 3.3.1 Position the role of HR in influencing and communicating the organisational risk culture. 3.3.2 Assess potential positive and negative people factor risks to achieving organisational objectives. 3.3.3 Identify and evaluate the potential risk impacts with regard to strategic and operational HR activities. 3.3.4 Decide on appropriate risk tolerances for the different components of the HR function. 3.3.5 Design and implement appropriate people-based risk management systems, metrics, risk controls, and HR practices which will contribute to mitigate the potential risks. 3.3.6 Ensure all HR risk practices conform to the organisational governance, risk and compliance strategies and policies including integrated reporting. SABPP (2013)
  • 37. HR risks – people risk, governance and compliance
  • 38. HR MEASUREMENT DEFINITION HR measurement is a continuous process of gathering, analysing, interpreting and presenting quantitative and qualitative data to measure and align the impact of HR practices on organisational objectives, including facilitating internal and external auditing of HR policies, processes, practices and outcomes. SABPP (2013)
  • 39. HR MEASUREMENT OBJECTIVES 13.2.1 Determine measurement approaches, methodologies and metrics to assess the effectiveness and efficiency of HR practices. 13.2.2 Identify relevant measurement areas for the purpose of integrated reporting. 13.2.3 Implement appropriate tools and methods to measure timely the efficiency, effectiveness and consistency of HR practices across the organisation. 13.2.4 Provide a clear framework for measuring HR impact on the bottom-line of the organisation. 13.2.5 Develop performance indicators for HR service delivery and business impact and present to the organisation in an appropriate HR Scorecard SABPP (2013)
  • 40. HR manager’s response to metrics?
  • 41. IMPLEMENTATION 13.3.1 Develop an integrated HR measurement and reporting framework. 13.3.2 Set up management systems and resource the HR function to collect and report on agreed people management metrics. 13.3.3 Develop and implement an HR scorecard. SABPP (2013)
  • 42. 13.3.1 Develop an integrated HR measurement & reporting framework • Determine key people-related metrics which will assist in determining progress towards achievement of strategic objectives. • Determine additional people related data or info that may be required to hold line accountable for performance of teams and determine how reports will be tabled for management control. • Ensure that reporting on metrics include normal organisational management reporting at all levels. • Demonstrate financial and other forms of impact – enable forecasting, scenario building, predictions. • Data collected should enable ROI or Return on Expectation ratios to evaluate programmes.
  • 43. 13.3.2 Set up management systems and resource HR function to collect and report on agreed people management metrics • Scale and depth of HR measurement and reporting will be constrained by the resources available. • Credibility and utility of HR reporting depends on accurate and complete data capture. • Control systems including internal and external audits should be in place to ensure data integrity. • Careful definition of each metric is important. • A detailed flow chart should be drawn up to describe data collection, storage and reporting for each metric. • One integrated HR data system is recommended. • Reporting formats should follow the design of other management reports – clear, simple, visible dashboards. • Meaningful interpretation of reports requires good knowledge of organisation and HR practices.
  • 44. 13.3.3 Develop and implement an HR scorecard • An HR scorecard selecting key indicators of HR Service Delivery should be agreed between HR Head and top management, • Regular assessment of performance against the scorecard, in accordance with the normal performance management process of the organisation, should lead to identification of areas for improvement and remedial action. • Conduct an internal and external audit of the HR function and people practices of the organisation against the documented service level agreement, documented HR practices and HR scorecard.
  • 45. Towards National HR Metrics • • • • • • • • • • • • % of people meeting performance contracts % of outstanding performers Average time to resolve people issues % of payroll spent on training Training spent per employee (costs/FTE) Total amount spent on employees Number of training hours per employee (year) % of key positions with successors Vacancy rate (vacancies/headcount) Absenteeism rate (sick days/FTE) Labour turnover (people left/headcount) Diversity/employment equity profile (race, gender, disability)
  • 46. Key Human Capital Metrics • • • • • • • • • • Revenue per employee (Revenue/FTE) Profit per FTE (Revenue-Operating cost/FTE) Human Capital ROI (benefits-costs/costs) Leadership quality index Employee engagement score Employee satisfaction score Organisation climate score Employer of choice index Human capital risk index (less than 10% risk) HR customer satisfaction score
  • 47. HR Standards Roll-out Development Consultation Release (21 May) (June-July) (20-21 Aug 24 Oct) Standards-writing Standards inputs Standards finalisation (100 top HR professionals) (100 top HR specialists + 1000 professionals) (450 HR Directors sign-off) HR Standards conference
  • 48. HR Standards Development Phase 1: Phase 2: HR MANAGEMENT SYSTEM STANDARD HR MANAGEMENT SYSTEM APPLICATION STANDARD HR PROFESSIONAL PRACTICE STANDARDS “HOW TO” STANDARD “WHAT” AND “HOW” OF SPECIFIC PROFESSIONAL PRACTICE STANDARDS “WHAT” STANDARD What are the elements of the HR system? 13 elements: Definition Objectives Implementation (High level) How can we apply the HR System standard? How to apply the 13 standard elements Phase 3: • • • • • • • Succession Planning Employment Equity Career Development Engagement Learning culture Change management Organisation design
  • 49. The need for consistency and quality
  • 50. SABPP HRM SYSTEM STANDARDS MODEL BUSINESS STRATEGY – HR BUSINESS ALIGNMENT Prepare ❸ HR Risk Management ❷ Talent Management HR ARCHITECTURE Implement ❹ Workforce planning ❺ Learning ⓫ HR Service Delivery Review ❻ Performance ❼ Reward ❽ Wellness HR VALUE & DELIVERY PLATFORM ⓭ HR MEASUREMENT HR Audit: Standards & Metrics ❾ ERM ❿ OD ⓬ HR Technology (HRIS) HR COMPETENCIES ❶ Strategic HRM Improve
  • 51. National HR Governance Strategy Alignment HR Competencies • • • • • • HR Products/Services: CPD Mentoring Professional registration Research HR Academy – QCTO Curriculum standards ISO: HR HR Professional Standards: • HRMS (13) • HRMSAS (13) • HRPPS (30+) HR Metrics: • National HR Scorecard • HR Service Standards Integrated Reporting HR Auditing: • Internal Audit • External Audit King IV: HR Governance
  • 52. Conclusion HR standards are needed to improve the consistency and quality of HR management. Best wishes with your HR professional work. Please keep on engaging with us as we take this exciting initiative forward. If you need a copy of the 1st HR Standards File, contact us on executiveoffice@sabpp.co.za
  • 53. FOLLOW US ON : @sabpp1 @mariussabpp #hrstandards2013
  • 54. We set HR standards! professional@sabpp.co.za (Professional Registration) sithembele@sabpp.co.za (Professional Services) kenneth@sabpp.co.za (Stakeholder Relations) penny@sabpp.co.za (Research) naren@sabpp.co.za (Learning & Quality) marius@sabpp.co.za (Strategy inputs) voice@sabpp.co.za (Social media) Website: www.sabpp.co.za Blog: hrtoday.me Office: 8 Sherborne Str, Parktown Tel: +27 11 482-8595 Fax: +27 482-4830 Cel: 082 859 3593 (Marius Meyer)
  • 55. Professional registration levels MHRP (Master) • M/D degree + 6 years top level experience • LoW = executive level CHRP (Chartered) HRP (Professional) • Hons degree + 4 years sr experience • LoW = senior management • Degree/ND + 3 years experience • LoW = middle management HRA (Associate) • 2 year dip + 2 years experience • LoW = junior level HRT (Technician) • Certificate + 1 year experience • LoW = entry